Goorin Bros., Inc. v. GoldStarHat LLC

Background

Goorin Bros., Inc. sued GoldStarHat LLC, alleging trademark infringement, trade-dress infringement, and violations of California’s Unfair Competition Law. Goorin alleged that GoldStarHat sold competing hats online bearing Goorin’s trademarked design and copying elements of Goorin’s trade dress, including a trucker-style hat and animal images centered in a square patch. Goorin sought an injunction, $1.41 million in damages, $1 million in punitive damages, attorney fees, costs, and interest.

Goorin served GoldStarHat’s registered agent on November 9, 2024. GoldStarHat never appeared, responded, or participated in the case. The clerk entered default on December 31, 2024, and that entry was served on GoldStarHat on January 7, 2025.

Jurisdiction, Service, and Default Judgment Standard

The court found federal-question jurisdiction over the trademark and trade-dress claims, supplemental jurisdiction over the related state and common-law claims, and personal jurisdiction based on GoldStarHat’s online sale and delivery of at least one physical product in the forum state. The court also found service proper under federal and California law.

Under Federal Rule of Civil Procedure 55, a clerk must first enter default before a court may enter default judgment. In deciding whether to enter judgment, the court considered the factors commonly used in the Ninth Circuit, including prejudice, the strength and sufficiency of the claims, the amount at stake, the likelihood of disputed facts, excusable neglect, and the preference for decisions on the merits. Because GoldStarHat defaulted, the court treated the well-pleaded factual allegations as true, but it required proof of the amount of damages.

Claims

For trademark infringement under the federal Lanham Act, the court found that Goorin owned two federally registered trademarks and that GoldStarHat used the marks without permission in commerce. The court found a strong likelihood of consumer confusion based on the facial similarity of the products and the allegations in the complaint.

For trade-dress infringement, the court found that Goorin adequately alleged that its trade dress was nonfunctional, had acquired secondary meaning, and was likely to confuse consumers. The court also found that the alleged trademark and trade-dress infringement adequately supported Goorin’s California unfair-competition claim.

Relief

The court entered default judgment in Goorin’s favor and against GoldStarHat. It permanently restrained GoldStarHat, its officers, directors, employees, agents, subsidiaries, distributors, and persons acting in concert with it from manufacturing, advertising, selling, or promoting goods using Goorin’s trademarks, trade dress, or confusingly similar marks or designs. The injunction also barred conduct that falsely suggested sponsorship, approval, endorsement, or association with Goorin, as well as efforts to circumvent the injunction.

The court rejected Goorin’s request for $1.41 million in compensatory damages because the original calculation relied substantially on conjecture. After considering available review and rating information and sales through other websites and a physical store, the court awarded $400,000 in actual damages. It also awarded $450,000 in statutory damages, representing a tripling that the court found justified by GoldStarHat’s conduct and refusal to participate in the case. The total damages award was $850,000.

The court did not award the requested $1 million in punitive damages. It found the request insufficiently supported and concluded that the conduct relied on to support punitive damages was already reflected in the increased statutory-damages award.

The court found that GoldStarHat’s continued alleged use of Goorin’s marks after receiving takedown notices, together with the apparent alteration of online images, showed willful conduct supporting attorney fees. It awarded $46,777.50 in attorney fees and costs. The award included interest from the date the action was filed at the legal rate.

Disposition

Judge Richard Seeborg granted in part and denied in part Goorin’s motion for entry of default judgment. The final judgment awarded $850,000 in damages, $46,777.50 in attorney fees and costs, and interest, and imposed the permanent injunction described in the order.